Dollar General Coming for Family Dollar

Family Dollar’s Board of Directors was notified last week via letter that Dollar General was attempting to purchase the company. This has stirred the pot because Family Dollar had already signed an agreement to be acquired by Dollar Tree. Dollar Tree offered $74.50 per share in a cash/stock combination. Dollar General topped this with an all cash offer valuing Family Dollar at $78.50 per share, or $9.7 billion.

Sales have been dwindling for Family Dollar, and they’ve been forced to close a number of locations. When informed of the agreement between Dollar Tree and Family Dollar, certain deductions were made by Dollar General indicating the time may be right to submit a bid. The agreement primarily told Dollar General that Family Dollar is willing to entertain offers.

Dollar General may be concerned about a more efficiently managed Family Dollar, which could pose a larger threat in terms of competitiveness. If accepted, assuming no anti-trust issues, the deal would cement Dollar General’s position as the largest small box discount retailer in the nation.

 

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Nick Banks

Nick created Front Street Commercial Real Estate Group in 2002 and spent the first eight years developing and acquiring office and retail projects in South Florida as well as North Central Florida. In 2010 the focus of the firm was shifted to primarily serve third party clients and perform brokerage, property management and mortgage banking functions. Nick has personally developed and acquired nearly 200,000 square feet of office and retail properties in markets throughout Florida. Prior to founding Front Street, Nick was the Director of Finance and Dispositions for Stiles Corporation in Fort Lauderdale where he financed and sold over $500 million in commercial real estate. Before joining Stiles, Nick was an Associate Director at GE Capital Real Estate where he sourced over $200 million in financing throughout Florida. Nick is a graduate of the University of Florida with a degree in Finance and a concentration in Real Estate. He serves as a board member and current vice-chair for the United Way of North Central Florida where he also chairs the Development Committee. Nick is actively involved with the Gainesville Area Chamber of Commerce where he serves as a board member and committee member for the Council for Economic Outreach. He is also a recent graduate of Leadership Gainesville which is a year long leadership program hosted by the Chamber. He is a member of Grace United Methodist Church where he has served as finance chair and as a member of the leadership council. Nick serves as an advisory board member of the University of Florida Bergstrom Center for Real Estate Studies. Nick was recently named chair of the Gainesville committee for the North Florida chapter of Urban Land Institute (ULI). He is a licensed real estate broker in the State of Florida and is a long time member of the International Council of Shopping Centers.

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